Thailand Set to Introduce New Tax Incentives to Accelerate SME Digital Transformation

The Thai Cabinet has recently approved, in principle, a new tax incentive measure to support SME digital transformation in Thailand. Under these new measures, qualified SMEs would be able to claim a 200% tax deduction on expenses related to digital transformation. This would effectively double the usual deduction rate and significantly reduce the cost burden of new technology adoption. To be enforced, the corresponding regulations must be published in the Royal Gazette first, but the tax benefits are expected to be retroactive from 24 June 2025.

Key Tax Incentive Policy Details

To benefit from the new expected tax incentives, SMEs must have their paid-up capital below 5 million THB and their annual revenue not exceeding 30 million THB. Eligible expenses include computer programs, specialized hardware, smart devices, and digital services registered in the Digital Economic Promotion Agency´s “Thailand Digital Catalog”. The maximum benefit is capped at 300,000 THB per accounting period, and the program is expected to run until 31 December 2027. 

Key Features of the SME Digital Transformation Tax Measure

Approval Date	24 June 2025 (Not implemented yet)
Eligible Companies: Paid-up Capital	Not exceeding 5 million THB
Eligible Companies: Annual Revenue	Not exceeding 30 million THB
Double Deduction Benefit	200% deduction (2× normal deduction)
Maximum Benefit Amount	300,000 THB per accounting period
Eligible Items	Computer programs, hardware, smart devices, digital services
Registration Requirement	Must be registered in the DEPA digital services catalog

Broader Digital Transformation Context in Thailand

This tax measure aligns with the Thai government´s digital economy strategy. The diversification of the economy via the digitisation of services, manufacturing, and the digital upskilling of the workforce remains a crucial part of Thailand´s economic recovery post-COVID. The World Bank estimates that currently, Thailand's digital economy contributes approximately 6% of GDP and has significant growth potential with further structural reforms. The government has also recently announced the “4GO” initiative to increase Thailand´s digital economy contribution to over 30% of the GDP. The four GOs relate to “GO Digital and AI, Go Innovation, Go Global, and Go Green”. 

Implementation Support of New Regulations at BizWings

BizWings Thailand provides full accounting and tax advisory support for SMEs in Thailand. We take into account the latest regulatory changes that might affect our clients to prepare them for new obligations or new incentives. Our services include identifying eligible expenses and optimizing tax filing strategies to maximize the benefits for our clients. With trilingual account management support in English, Japanese, and Thai, we translate complex policy requirements into actionable financial strategies and enable SMEs to fully capitalize on Thailand's incentives and requirements.

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